Hacker News new | past | comments | ask | show | jobs | submit login

Thanks for the comments. I do have a financial background, and to my knowledge companies usually don't amortize advertising. Amortization and depreciation is something reserved for large assets that have a significant upfront cost and a very long lifespan - like a building.

The benefits from advertising are usually used immediately. Buy a super bowl commercial? The benefits are definitely used up within that year, if not that week.

For a business like this, cash flow is essentially what you see on the income statement. No huge account payables (pay bills with a CC) and no non-cash expenses (like depreciation. Again, I'n not depreciating my advertising.)

Also, I do happen to have a Series 7 and 66 - but as I left the financial industry a while ago they aren't current. I could be wrong, but I don't think there's any rule that prohibits me from 1) selling my own business and 2) disclosing the financials without a license. Might be different if I was selling YOUR business for you.

If you have a financial background and/or sources for your points above, I'm very open to being corrected. Just let me know.




I was more wondering about working capital management RE: cash flow. I was originally an IB analyst @ BB.

The series 7/63 issue only applies if you don't leave the usual "forward looking statements etc" disclosure.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: